401(k) Account Balances Reach New Highs in Q1

June 3, 2013

Share This Story

401(k) Account Balances Reach New Highs in
Q1

According
to research conducted by Fidelity Investments, individual account balances in 401(k)
plans hit a record high $80,900 at the end of Q1 2013. This was due to additional
employee and employer contributions coupled with strong returns in the equities
market. The average balance in Q1 2013 represents an 8.4 percent increase over the
same time period last year which had an average balance of $74,600.

Pre-Retirees,
those employees over 55 who have been with the same employer for 10 or more
years, showed strong growth over the past four years, with average account
balances reaching $255,000, nearly double what it was for the same time period in
2009.

The
research shows that pre-Retirees contributed to their 401(k) plans at an
average of 10.3 percent of their salary in Q1 2013, a full two percentage
points higher than the average of 8 percent for all workers. Combined with average
employer contributions of 4.5 percent, and pre-retirees’ average contribution
amount totals 14.8 percent.

Join Our Online Community

Join the Better Way To Retire community and get access to applications, relevant research, groups and blogs. Let us help you Retire Better™